What it takes to get a loan

How much do you need to earn each year to qualify for a mortgage in New York City? It may not be surprising that the answer is over six figures for an average home. But that still makes NYC a relative bargain compared to places like San Jose, Calif., where a buyer needs to earn more than $186,000 a year to qualify for a mortgage for a typical home.

In fact, according to a new study by the National Association of Homebuilders, six of the top ten most expensive metropolitan areas to by a home with a mortgage where in California – three were in New York.

Douglas Robinson, a spokesman with NeighborWorks America, told CNBC that homebuyers often focus too much on the mortgage interest rate and the price of the home, when they should focus on what fits their budget.

“The home price number is important – very important – but it is not the right number for consumers to have top-of-mind,” Robinson said. “The right number is what they could afford and qualify.”